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Senior Advisor

Re: got a haircut

That being the case, why does business oppose tax increases if they can merely add it to the sales price of it's product?  How much do you add to the price of a bale of hay to pay your taxes? Or do you sell your product based on what the market will bear?

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Veteran Advisor

Re: got a haircut


@kraft-t wrote:

That being the case, why does business oppose tax increases if they can merely add it to the sales price of it's product?  How much do you add to the price of a bale of hay to pay your taxes? Or do you sell your product based on what the market will bear?


I sell my product on what the market will bear, to a point.  If fertilizer is $125+ an acre now, where it used to be $35 a few years ago and the weather is as unpredictable as it is, you must stop producing when your costs exceed the point of what the markets will bear.  That is why I have rented out 95% of the hay ground to a younger farmer to grow crops on.

 

Most other hay growers have done the same thing.

 

I have now worked out a deal with a large horse stable to let them bring their manure down to our farm, on their own dime, and I will grow orchard grass on the hills that are too steep to raise corn and beans on.  I get about 16 tons of horse manure per week that I can use instead of chemical fertilizer.  That is the only way that I can get back into hay production again on any scale.

 

I now can compete with anyone else attempting to raise hay for commercial sales, on the land that needs it the most.  Leaving the alfalfa out will also reduce the risk of wet soils causing the expensive stands to die out early..  Also, I can spray for weeds easier without the legume mixed in with the grass.  I will let Nebraska grow the alfalfa and let them spend the money to produce it for a dying dairy market.

 

Bottom line is, if added costs of government regulation, taxes and other costs push the input cost beyond what the market will bear, production will cease.   That is what is going on right now with the socialist regime in control.  The Conservatives will create an environment for business to sprout, grow and contribute, like it used to.

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Senior Advisor

Re: got a haircut

Like my deceased friend Floyd used to say. " I would rather have corn cob that a pig has farted on than a whole truck load of horse manure."

 

With all the Bs you spread, you shouldn't need to haul in fertilizer.

 

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Veteran Advisor

Re: got a haircut


@kraft-t wrote:

Like my deceased friend Floyd used to say. " I would rather have corn cob that a pig has farted on than a whole truck load of horse manure."

 

With all the Bs you spread, you shouldn't need to haul in fertilizer.

 


What is wrong with horse manure?  It is made of grass and water and maybe some of the best oats that money can buy.  The very same things that orchard grass takes up to make new growth.  I figure that 16 tons per week spread over about ten acres will net a gain in fertility in anyone's book.   I have had my belly full of anything to do with hogs.

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Veteran Advisor

Re: got a haircut

Sarcasm is always stupid IMHO.  So explain how and what did I step in.

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Senior Contributor

Re: got a haircut

Can someone please remind me when Federal taxes were increased? State and local are state and local problems and before any party is blamed, I would recommend seeing who is in charge. I think this business just increased their fees, because I don't think any Federal taxes have been increased in a long while.

 

http://www.moneychimp.com/features/tax_brackets.htm

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Veteran Advisor

Re: got a haircut

Like Knapper said, who runs your local, countyand state politics?  That is where most of the increased regs and taxes are coming from and to hear you talk, it is all repubs where you live.

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Senior Contributor

Re: got a haircut

The Reagan Democrats will rise again.     -        Fancy wanting to go back to the future there.   The only sad part about the passing of Reagan was that it didn't happen before he became president.

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Veteran Advisor

Re: got a haircut

Because if a customer has $500 to spend, and you are selling widgets at $5 each, with a $1 profit per, you made $100.

If the government taxes the widgets another $1 each, making them cost $6 each, the customer can only afford 83, which means you only made $83.  Since chances are, you still have bills to pay, you may need to raise the widget price to $6.25 after tax, which means that the customer can only afford to buy 80.  80 widgets times 1.25 profit for you gives you the $100 you need to keep your business going.

However, the widget factory, because of loss of sales, is only running at 80% capacity.  This gives the tough choice of lower wages, layoffs, or going broke.  Vigils are held, in opposition of the widget factory reducing the size of the work force, or reducing wages/benefits, and the management gives in.  In a short time, the company goes bankrupt, and ther widget-making tooling is sold to a company in China, who pays schoolchildren 39 cents an hour in sweatshops, to churn out widgets for $3.75 cost, instead of the original $4 cost of the USA made widgets.  You reduce your prices back to the original $5 a widget, and the government officals who raised the taxes declare victory.

Meanwhile, no one seems to be able to afford these new widgets, because of rising unemployment, and the devaluation of the dollar, and people walk around wondering why???

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Senior Contributor

Re: got a haircut

Saw "haircut" and flashed back to the early 70's song by Crosby Stills and Nash, "Almost Cut My Hair".  Doesn't add anything to the discussion but perhaps some will appreciate.  Haven't thought about that song for more than twenty years.